Image: California Real Estate Transfer Disclosure Statement
What is the California Real Estate Transfer Disclosure Statement?
When it comes to buying or selling a property in California, there are a lot of legal requirements to fulfill. One of the most important documents in this process is the California Real Estate Transfer Disclosure Statement (TDS). This document, also known as CA RETDS, is mandated by the California Civil Code under Section 1102 (CAL. CIV. §1102.3). It is a crucial piece of information that sellers must provide to buyers during the contract contingency period. The TDS is designed to disclose any known defects or issues with the property, ensuring transparency and protecting buyers from potential risks.
Different Sections in the California Real Estate Transfer Disclosure Statement
The TDS is divided into five sections, each capturing specific aspects of the property:
Coordination with Other Disclosure Forms
In this section, the seller must disclose the TDS along with other required disclosures in the state of California. Additionally, any relevant inspection reports must be provided to the buyer. This ensures that buyers have access to all the necessary information to make an informed decision.
Seller's Information
The seller is responsible for providing information about the property. This includes disclosing any issues or defects they are aware of, such as non-operational appliances, leaky roofs, or any deaths that have occurred on the property in the last three years. While the TDS is not a warranty, it serves as a reliable source of information for the buyer.
Agent's Inspection Disclosure - For Seller and Agent
Visual inspections of the property are performed by both the seller's listing agent and the buyer's agent. The seller's agent must complete the agent's inspection disclosure, while the buyer's agent completes a separate section. It is essential for agents to be thorough in their inspections and disclose any potential issues. Leaving any item undisclosed could lead to legal consequences.
Additional Professional Advice and/or Inspections
In this section, the seller acknowledges and allows the buyer to conduct additional home inspections before finalizing the purchase. This step ensures that buyers have the opportunity to thoroughly assess the property and make an informed decision.
Why is the California Real Estate Transfer Disclosure Statement Important?
The California Real Estate Transfer Disclosure Statement is a vital document in the home buying process. It provides buyers with essential information about the property they are considering. If a seller fails to disclose pertinent information, it can lead to legal troubles, as this document can be used as evidence in court. Therefore, it is crucial for sellers to complete the TDS accurately to protect both themselves and the buyer.
Remember, if you have any questions or need assistance in preparing a transfer disclosure statement, consulting a real estate lawyer is always a good idea.
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